During the first week, it fell about $5 per barrel due to real and feared demand destruction from frozen travel in Europe after the volcano eruption in Iceland, among other factors influencing [image-nocss] traders. Then last week as travel problems subsided, crude regained the $5 and ended up back at $84.92.
Margin did change though, shrinking by 2.16 cents per gallon to an average 9.94 on regular grade, as wholesale prices edged up but retail didn't.
Around the country, prices rose in about half the metro markets and fell in the other half during the past two weeks. Retail margin on April 23 was less than 10 cents per gallon in about half the markets, and above that in the other half.
In a good exhibit of the effect of lag time between wholesale and retail affected by competition, Midwest retail fell nearly 3 cents while wholesale edged up slightly, cutting margin by 4.42 cents to 8.45 cents per gallon. The trend was similar in the Gulf region. In the West, retail didn't budge, wholesale rose a cent, costing retailers 1 cent of their comparatively wide margin, momentarily nearly 14 cents per gallon on regular. In the East, wholesale prices rose more than retail, cutting a penny from margin. Only in the Rockies, with wholesale passing into retail, was there a no-change to the (notably skinny) margin.
Gasoline supply continues to be ample, backed up by persistent excess refining capacitymore than enough to handle seasonal demand hikes or any glitches in the system. Perhaps more obviously than usual, the retail price trend will follow that of crude.
Year-to-date, all three grades of gasoline combined, retail margin is comparatively healthy at 11.51 cents on regular, a tenth of a cent under that of 2009.
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